Prime Minister Mark Carney announced Cabinet will cut the federal payroll by a tenth and find $60 billion in savings after the Budget Office warned of likely missed deficit targets and excessive secrecy regarding planned savings.

“We are reducing the size of the public service by 10 percent and cutting management consultants by 20 percent,” Carney told the Montréal Chamber of Commerce, adding that "tough, responsible choices" will save taxpayers big time.

The fiscal watchdog Budget Office criticized Budget 2025's lack of detail on cutbacks, including the unclear impact on programs, personnel, and service levels. The budget plans to reduce public sector full-time positions by 38,000, from a 2023-24 peak of 368,000 to a "more sustainable level" of 330,000 by 2028-29.

Meanwhile, federal spending concerns continue as the budget proposes $580.9 billion in spending this fiscal year.

Interim Budget Officer Jason Jacques told the Commons government operations committee on September 5 that federal overspending was "near the breaking point." Jacques testified that the "alarming" and "unsustainable" situation means, "if you don’t change, this is done.”

The November 3 Cabinet budget set this year’s deficit at $78.3 billion, over triple the initial target. This was the largest deficit in Canadian history, excluding pandemic overruns.

While the government plans to cut wasteful spending on management and consulting services by 20% over three years, it is worth noting that the sector has more than doubled to $19.5 billion since 2015-16. No details on how the cut will be achieved were provided.

The Budget Office requested details on planned savings from federal managers. It was refused by the Treasury Board, citing employee anxiety, according to Blacklock’s. The federal payroll currently has 445,000 employees. 

Bloc Québécois MP Marie-Helene Gaudreau questioned the scope of cuts. 

“In these major budget cuts that are coming, what kind of numbers are we going to see?” Gaudreau asked on November 4. “No decisions have been made,” Treasury Board President Shafqat Ali replied. “I will share that information as soon as possible.”

The Parliament Of Canada Act, Section 79.4.1, guarantees the Parliamentary Budget Officer (PBO) free and timely access to necessary information from federal departments or Crown corporations. This prevents federal managers from withholding information.

In 2013, the Budget Office sought a Federal Court order to force federal managers to disclose data. Though the court dismissed the case on a technicality, it affirmed the clear law mandating “free and timely access to any financial or economic data.” 

In 2015, the Commons library committee, which oversees the Budget Office, resolved that "The House has never set a limit on its power to order the production of papers and records.”

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